Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q1 2022 Earnings Presentation
27 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, May 10, 2022
Slide 1: Earnings Presentation BRSA Bank-Only 1Q22
Earnings Presentation BRSA Bank-Only 1Q22 May 10, 2022
Slide 2: 1Q22 Earnings and Profitability
Earnings Presentation Bank-Only 1Q22 1Q22 Earnings and Profitability Net Income (TL million) Core Banking Revenue (TL million)* 300% 208% TL 228 million additional free provision 3,230 3,002 10,384 10,942 1,998 5.4% 50.3% 3,555 750 1Q21 4Q21 1Q22 1Q22 Adj 1Q21 4Q21 1Q22 Pre-Provisions Profit** Cover
Slide 3: Key Highlights of 1Q22
Earnings Presentation Bank-Only 1Q22 Key Highlights of 1Q22 Commercial loan driven quarterly lending activity FC loans are up by TL 643 Total loans are up by TL 401 TL loans are up by $ 16.5 billion billion 4.2% QoQ and down by 0.7% 12.0% QoQ and 43.4% YoY billion 10.8% QoQ and 28.7% YoY YoY in USD
Slide 4: 1Q22 P&L Details
Earnings Presentation Bank-Only 1Q22 1Q22 P&L Details 1Q22 QoQ YoY Free Provisions Net Interest 9,206 3% 243% Income 2017 +TL 500 mio Net Fees and 23% 99% 2018 +TL 530 mio 1,736 Commissions 2019 -TL 178 mio Dividend Income 122 100% 100% 2020 +TL 220 mio Net Trading 1,125 220% 323% Income 2021 +TL 70
Slide 5: Effective NIM management
Earnings Presentation Bank-Only 1Q22 Effective NIM management Net Interest Margin (NIM %) Swap Adjusted Net Interest Margin (%) +2.4 ppt +2.9 ppt 4.8 3.9 3.7 4.2 2.8 1.8 1.8 +1.4 ppt +1.9 ppt 0.7 1Q21 4Q21 2021YE 1Q22 1Q21 4Q21 2021YE 1Q22 CPI Expectations Total Money Market Funding 1Q21 2Q21 3Q21 4
Slide 6: Net Fee & Commission Income Breakdown
Earnings Presentation Bank-Only 1Q22 Net Fee & Commission Income Breakdown Net Fee & Commission Income (TL million) Net Fee & Commission Income Breakdown 99% Cash Loans Non-Cash Loans Payment Systems 1,736 20% 24% 44% 1,409 23% Insurance Other 874 7% 5% 1Q21 4Q21 1Q22 Fee/Opex Ratio (%) 16.4 ppt 57.
Slide 7: All-time low cost/income ratio
Earnings Presentation Bank-Only 1Q22 All-time low cost/income ratio Opex (TL million) Cost/Income Ratio (%) 42% 13 ppt 3,043 32.7 2,847 2,149 25.6 6.9% 20.0 5.6 ppt 1Q21 4Q21 1Q22 1Q21 4Q21 1Q22 HR Cost (TL million) Breakdown of OPEX Non-HR Cost (TL million) 45% 39% 1,228 1,359 1,619 1,683 10.7% HR
Slide 8: Well-diversified & stable loan breakdown
Earnings Presentation Bank-Only 1Q22 Well-diversified & stable loan breakdown Portfolio Breakdown (%) Portfolio Breakdown (%) 62% 38% 1Q22 17% TL Loans FC Loans Com. & Corp 4Q21 30% 50% in USD terms TL 323 billion 3Q21 4% 11% 9% 4% 2Q21 3% 5% 1% 0% -1% -5% 2Q21 3Q21 4Q21 1Q22 2Q21 3Q21 4Q21 1Q22 28%
Slide 9: Breakdown of loan portfolio
Earnings Presentation Bank-Only 1Q22 Breakdown of loan portfolio Sector Breakdown of Cash Loans Breakdown of FC Loans Manufacturing Retail Loans Breakdown of Project 17% 20% Finance 12% Other (inc. Export Energy business and 13% Loans 1Q22 11% Construction 31% retail credit cards) 3% Working 55% 44%
Slide 10: Further increased coverage ratios
Earnings Presentation Bank-Only 1Q22 Further increased coverage ratios NPL (TL million)* Stage II Loans Breakdown (TL million) Stage II 14.1 13.3 14.5 18.2 Coverage 2,347 18,991 Ratio (%) 18,310 1,666 Share in 8.18 8.69 10.83 10.03 total loans (%) 62,159 64,475 Total Stage II Loans NPL 4Q21 New NPL
Slide 11: The first Turkish bank incorporated sustainability approach to its provisioning policy
Earnings Presentation Bank-Only 1Q22 The first Turkish bank incorporated sustainability approach to its provisioning policy Proactive provisioning policy in accordance with CBAM (Carbon Border Adjustment Mechanism) and ‘Fit for 55’ principles To eliminate the transformation risk of these companies,
Slide 12: Well-balanced deposit portfolio
Earnings Presentation Bank-Only 1Q22 Well-balanced deposit portfolio Total Deposits (TL billion) Breakdown of Deposits Market 11.2% 11.3% 11.1% 11.5% Share 51% 49% 58% 42% 684.2 590.9 Sector 432.4 465.7 335.5 $ 23.0 FC 225.7 TL Deposits FC Deposits TL Deposits FC Deposits 198.9 211.6 TL $ 25.4 $ 25.
Slide 13: Well diversified external funding
Earnings Presentation Bank-Only 1Q22 Well diversified external funding Breakdown of Wholesale Funding TL 62.4 billion sustainable finance provided as of 1Q22 in the balance sheet Eurobond IFI Borrowings Local Bonds Other 29% 2.4% 2.3% 6% AT I Issuance Eurobond Sustainable 8.5% Finance* 29.2% IFI 25%
Slide 14: Enhanced solvency ratios via CET1 injection
Earnings Presentation Bank-Only 1Q22 Enhanced solvency ratios via CET1 injection Capital Adequacy Ratio (%) 1Q22 Solvency ratios without BRSA CET I 10.90 10.52 9.88 9.96 12.84 Required CET1 level 8.5% forbearance (% - 1Q22) 1Q22 Tier I 13.59 13.22 12.39 12.88 15.57 Required Tier I CAR 14.58 level 10
Slide 15: Appendix
Earnings Presentation Bank-Only 1Q22 Appendix Pg. 16 Sustainable banking approach Pg. 17 Sustainability governance Pg. 18 Sustainable loan products Pg. 19 Improved efficiency with enhanced digital platforms Pg. 20 Composition of assets & liabilities Pg. 21 Well-positioned security portfolio Pg. 22 R
Slide 16: Sustainable banking approach
Earnings Presentation Bank-Only 1Q22 Sustainable banking approach Indices Initiatives Sustainability Rating B Score in 2021 Score: 47 in 2021 1st assessment in 2015 Sustainability Reporting 16
Slide 17: Sustainability Governance
Earnings Presentation Bank-Only 1Q22 Sustainability Governance The integration into decision-making General Manager processes and management of sustainability (Head of Committee) is the responsibility of the Sustainability Sustainability Committee, which is the high level decision- Committee One Boa
Slide 18: Sustainable Loan Products
Earnings Presentation Bank-Only 1Q22 Sustainable Loan Products Women in Business Loan Green Mortgage Loan For a business that is managed or owned by Aiming to support the reduction of residential women, having less than 250 employees energy consumption and greenhouse gas and completing the year
Slide 19: Improved efficiency with enhanced digital platforms
Earnings Presentation Bank-Only 1Q22 Improved efficiency with enhanced digital platforms Branch 940 9% Branches # of active* digital Internet banking customers Banking reached 6.1 million 41% 6,127K # of transaction made Mobile Digital Non-branch transaction through digital platform Banking Banking
Slide 20: Composition of asset&liabilities
Earnings Presentation Bank-Only 1Q22 Composition of asset&liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other 15.1 1Q22 Interbank The share of IEA 2.2 85% 48% 52% 1Q22 in total assets Loans Securities 58.2 24.6 TL FC Breakdown of Liabilities (%) TL/FC Mix in Total Liabilities Funds R
Slide 21: Well-positioned security portfolio
Earnings Presentation Bank-Only 1Q22 Well-positioned security portfolio Total Securities (TL million) Portfolio Structure 75.3% 1Q21 Breakdown of FC Securities 6% 272,150 38% 100% 223,737 21.6% 1Q22 93,276 57% 175,232 73,862 155,276 14,742 Fixed 62,715 16,404 1Q22 Breakdown of TL Securities 58,717 1
Slide 22: Retail Lending Portfolio
Earnings Presentation Bank-Only 1Q22 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL billion)* 1.2% 24.3% 75.7% ~70% of GPC loans ~30% of mortgages extended to payroll clients extended to payroll clients 26.8 49.9 49.3 23.6 48.8
Slide 23: Diversified funding sources via non-deposit funding
Earnings Presentation Bank-Only 1Q22 Diversified funding sources via non-deposit funding Syndication Eurobonds and Private Placements USD 1.8 billion outstanding USD 4.3 billion outstanding Eurobonds and USD 89.3 million Nov’21: USD 650 million equivalent syndicated loan, Libor +2.15%, outstanding
Slide 24: Unconsolidated Key Financial Ratios
Earnings Presentation Bank-Only 1Q22 Unconsolidated Key Financial Ratios 1Q21 2Q21 3Q21 4Q21 1Q22 Profitability ROAE 6.4% 5.5% 6.4% 15.9% 18.9% ROAA 0.4% 0.4% 0.4% 0.9% 1.1% Cost / Income 32.7% 50.7% 43.4% 25.6% 20.0% Cost / Assets 1.2% 1.2% 1.2% 1.1% 1.1% Fee / Cost 40.7% 44.5% 46.4% 47.3% 57.1% NI
Slide 25: Unconsolidated Balance Sheet
Earnings Presentation Bank-Only 1Q22 Unconsolidated Balance Sheet (TL-thousand, %) 1Q21 4Q21 1Q22 TL USD TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with Central 68,600,305 8,325,280 144,148,987 10,757,387 132,831,962 9,048,499 93.6% -7.9% 8.7% -15.9% Bank Assets Interbank 16,732,623 2,030,
Slide 26: Unconsolidated Income Statement
Earnings Presentation Bank-Only 1Q22 Unconsolidated Income Statement (TL thousand, %) 1Q21 4Q21 1Q22 YoY QoQ Net Interest Income 1,097,718 7,267,007 8,129,337 640.6% 11.9% (Inc. Swap Cost) Income on CPI linkers 1,424,093 3,844,216 5,356,846 276.2% 39.3% Swap Cost -1,582,606 -1,708,109 -1,076,403 -32
Slide 27: VakıfBank Investor Relations contact
For VakıfBank IR Application: For Earnings Presentations: A member of BIST Sustainability Index Investor Relations Saray Mahallesi Dr. Adnan Buyukdeniz Cad. A1 Blok No: 7a Umraniye/Istanbul E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.vakifbank.com.tr Di
Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q1 2022 Earnings Presentation on 6ix